KyberSwap DEX exploited for $46 million, TVL tanks 68%

Around $46 million in various crypto assets have apparently been drained from the KyberSwap decentralized exchange in the latest decentralized finance exploit.

On November 23, the Kyber Network team alerted its users by stating in an X (Twitter) post that KyberSwap Elastic "has experienced a security incident."

It advised users to withdraw their funds as a precaution and added that it was investigating the situation.

Urgent

Dear KyberSwap Elastic users:
We regret to inform you that KyberSwap Elastic has experienced a security incident.

As a precautionary measure, we strongly recommend all users to withdraw their funds as soon as possible. Our team is diligently investigating the situation and we...

- Kyber Network (@KyberNetwork) November 22, 2023

Blockchain Detectives Highlighted Impacted and Exploitative Wallet addressesthat were still active recently.

According to Debank dataAround $46 million has been stolen in the attack, including approximately $20 million in wrapped Ether (wETH), $7 million in Lido-wrapped Ether (wstETH), and $4 million in Arbitrum (ARB).

The funds were split across several chains including Arbitrum, Optimism, Ethereum, Polygon, and Base.

Kyberswap is running out, multiple sources report.

If you have assets, withdraw pic.twitter.com/Y5ooYYzcTd

— olimpio (@OlimpioCrypto) November 22, 2023

in an x mailBlockchain sleuth “Spreek” said he was “pretty sure this is NOT an approval related issue and is only related to the TVL held in the Kyber pools themselves.”

The attacker has also left a chain. message for protocol developers and DAO members, saying that “negotiations will begin in a few hours when I am fully rested.”

Related: KyberSwap Announces Potential Vulnerability, Tells LPs to Exit ASAP

DefiLlama data sample KyberSwap's total value locked (TVL) plummeted 68% in a few hours and nearly $78 million left the protocol due to the hack and user withdrawals. Its TVL currently stands at $27 million, down from its peak of $134 million in 2023.

Kyber Network Crystal KNC token prices briefly fell 7% when news of the exploit broke, but have since recovered to trade at $0.74.

The team identified a vulnerability in April, advising users to withdraw liquidity. However, no funds were lost in that incident.

Magazine: Should crypto projects ever negotiate with hackers? Probably